The Brainy Business | Understanding the Psychology of Why People Buy | Behavioral Economics

Explore the art and science of influence in marketing with Rory Sutherland as he discusses leveraging language, emotions, and small contextual changes to drive consumer behavior. Delve into the significance of unmet needs, the limitations of logic, and the role of evolutionary psychology in marketing strategies. Gain insights on balancing efficiency and resilience, rewards for exceptional customer service, and unconventional pathways to understanding human behavior through creative problem-solving and direct marketing experiments.

Explore how evolutionary thinking can outsmart competition with insights from organizational psychologist and advertising strategist, Sam Tatum. Delve into language's role in perception, the power of shared solutions, and practical problem-solving rooted in behavioral science principles.

In the episode of The Brainy Business podcast, Cass Sunstein, a renowned legal scholar and behavioral economist, joined host Melina Palmer to discuss his new book, Look Again, and the concept of habituation and its impact on decision-making. Cass' extensive work in government and with businesses has provided him with a deep understanding of human behavior, making his insights invaluable for business leaders and decision-makers. The conversation delved into the significance of habituation, exploring how individuals become less sensitive to stimuli over time. Cass highlighted the value of exploration and exploitation in learning and decision-making, emphasizing the impact of emotions on behavior and the role of diversity in decision-making processes. The episode provides valuable insights into how businesses can apply behavioral economics principles to enhance decision-making processes, ultimately shaping choices presented to individuals and influencing behavior in beneficial ways. Cass' expertise and perspectives make this episode a must-listen for business leaders seeking to understand and leverage human behavior insights for enhanced decision-making. In this episode: Understand the psychology behind decision-making for strategic advantage. Harness habituation to gain insights into customer perception and behavior. Appreciate the power of dishabituation for uncovering hidden opportunities. Master the balance between exploration and exploitation for effective learning. Leverage nudges to influence decision-making and drive positive outcomes. Show Notes: 00:00:00 - Introduction, Melina introduces Cass Sunstein, his background in behavioral economics, and his newest book Look Again. 00:04:26 - The power of habituation Cass explains the concept of habituation and its impact on how we perceive the world around us, using examples from everyday life. 00:06:15 - The importance of dishabituation Cass discusses the importance of dishabituation in appreciating the good things in life and addressing challenges, using examples from personal experiences and historical figures. 00:13:27 - Creativity and the Fosbury Flop Cass explores the concept of creativity and the importance of critical distance from existing practices, using the example of Olympic athlete Dick Fosbury and his innovative high jump technique. 00:15:56 - Fosbury Flop in Government Cass shares examples of how the Fosbury Flop concept has been applied in the government to drive innovation and improve efficiency, using specific policy examples. 00:16:36 - Creativity and Disruption Cass discusses how global entry and TSA precheck were developed by creative people, like disruptors who refuse to habituate and bring ideas from other areas. 00:17:43 - Exploration vs. Exploitation Cass explains the difference between exploiters and explorers, where exploiters stick to what they know, while explorers seek new experiences and habituate quickly. 00:21:07 - Bill Gates vs. Warren Buffett Cass shares how Bill Gates' wide-ranging reading list reflects an explorer, while Warren Buffett's focused recommendations align with an exploiter. 00:25:19 - Tips for Writing and Co-Authoring Cass advises to follow your excitement for a project, start writing even if it's difficult, and find co-authors who are enjoyable to work with and bring out the best in each other. 00:33:38 - Conclusion, Melina's top insights from the conversation. What stuck with you while listening to the episode? What are you going to try? Come share it with Melina on social media -- you'll find her as @thebrainybiz everywhere and as Melina Palmer on LinkedIn. Thanks for listening. Don't forget to subscribe on Apple Podcasts or Android. If you like what you heard, please leave a review on iTunes and share what you liked about the show. I hope you love everything recommended via The Brainy Business! Everything was independently reviewed and selected by me, Melina Palmer. So you know, as an Amazon Associate I earn from qualifying purchases. That means if you decide to shop from the links on this page (via Amazon or others), The Brainy Business may collect a share of sales or other compensation. Let's connect: Melina@TheBrainyBusiness.com The Brainy Business® on Facebook The Brainy Business on Twitter The Brainy Business on Instagram The Brainy Business on LinkedIn Melina on LinkedIn The Brainy Business on Youtube Connect with Cass: X LinkedIn Learn and Support The Brainy Business: Check out and get your copies of Melina's Books. Get the Books Mentioned on (or related to) this Episode: Look Again, Cass Sunstein and Tali Sharot Nudge, Richard Thaler and Cass Sunstein Scarcity, Sendhil Mullainathan and Eldar Shafir Possession, A.S. Byatt Radical Uncertainty, John Kay and Mervyn King Top Recommended Next Episode: Optimism Bias (ep 34) Already Heard That One? Try These: Nudge (ep 35) Incentives (ep 272) Understanding Mapping (ep 294) Defaults (ep 38) Give Feedback (ep 40) Expect Error (ep 362) Sludge (ep 179) Normalcy Bias (ep 370) Habits (ep 256) Wendy Wood Interview (ep 127) Other Important Links: Brainy Bites - Melina's LinkedIn Newsletter

In this episode of The Brainy Business podcast, Melina Palmer explores the concept of normalcy bias and its implications for decision-making. She provides compelling examples of how normalcy bias impacts individuals and industries, emphasizing the necessity of overcoming this mindset to foster adaptability and innovation. Melina underscores the significance of seizing virtual opportunities and leveraging behavioral economics for business success, urging her audience to consider the enduring value of maintaining virtual offerings. Additionally, she addresses the perils of normalcy bias, emphasizing the need to acknowledge and confront the tendency to underestimate potential future challenges or changes. Melina teases an upcoming episode with Cass Sunstein, where the concept of normalcy bias will be thoroughly examined, offering listeners an exciting chance to gain further insights. This segment offers valuable insights on embracing change, capitalizing on virtual prospects, and challenging conventional norms, making it essential listening for business professionals seeking to enhance their decision-making acumen. In this episode: Recognize the impact of normalcy bias on decision-making processes. Utilize virtual opportunities to leverage behavioral economics for business growth. Enhance business success by maintaining virtual offerings in the current market landscape. Implement diversification strategies to mitigate risks and optimize business resilience. Address normalcy bias to improve decision-making and strategic planning. Show Notes: 00:00:00 - Introduction Melina introduces the concept of normalcy bias and its impact on decision-making during times of crisis or change. 00:03:02 - Impact of Normalcy Bias on Decision Making Melina discusses how normalcy bias affects decision-making, leading to complacency and resistance to change, using examples from different industries. 00:09:20 - Clinging to Normalcy in Times of Change Melina explores the tendency to cling to normalcy even when change is inevitable, and how this can hinder adaptability and innovation in businesses. 00:12:48 - Impact of Normalcy Bias on Financial Industry Melina provides an example of how normalcy bias affected decision-making in the financial industry, leading to missed opportunities and potential risks for businesses. 00:15:08 - Adapting to Change and Overcoming Normalcy Bias Melina shares insights on the need to adapt to change, prepare for unforeseen circumstances, and overcome normalcy bias for long-term business sustainability. 00:16:05 - Exploring New Opportunities Melina discusses the need to look for virtual opportunities, the importance of behavioral economics for business success, and the potential for adding new product lines accessible from home. 00:16:34 - Market Fit and Future Planning Melina emphasizes the importance of aligning with market needs, maintaining future sustainability, and considering brand continuity in business decisions. 00:17:25 - Diversification and Normalcy Bias Melina highlights the significance of diversification in business and the impact of normalcy bias on decision-making and problem-solving in the face of change. 00:18:09 - Underestimating Change Melina discusses how normalcy bias leads to underestimating the impact and duration of problems, and the need to regain sensitivity to notice both positive and negative aspects of life. 00:19:25 - Conclusion Melina's top insights from the conversation. What stuck with you while listening to the episode? What are you going to try? Come share it with Melina on social media -- you'll find her as @thebrainybiz everywhere and as Melina Palmer on LinkedIn. Thanks for listening. Don't forget to subscribe on Apple Podcasts or Android. If you like what you heard, please leave a review on iTunes and share what you liked about the show. I hope you love everything recommended via The Brainy Business! Everything was independently reviewed and selected by me, Melina Palmer. So you know, as an Amazon Associate I earn from qualifying purchases. That means if you decide to shop from the links on this page (via Amazon or others), The Brainy Business may collect a share of sales or other compensation. Let's connect: Melina@TheBrainyBusiness.com The Brainy Business® on Facebook The Brainy Business on Twitter The Brainy Business on Instagram The Brainy Business on LinkedIn Melina on LinkedIn The Brainy Business on Youtube Learn and Support The Brainy Business: Check out and get your copies of Melina's Books. Get the Books Mentioned on (or related to) this Episode: Look Again, Cass Sunstein and Tali Sharot Sludge, Cass Sunstein Nudge, Richard Thaler and Cass Sunstein Simpler, Cass Sunstein What Your Employees Need and Can't Tell You, Melina Palmer Top Recommended Next Episode: Sludge (ep 179) Already Heard That One? Try These: Nudge (ep 35) Optimism Bias (ep 34) Loss Aversion (ep 9) Availability Bias (ep 15) Time Discounting (ep 51) Herding (ep 19) Other Important Links: Brainy Bites - Melina's LinkedIn Newsletter Tali Sharot Ted Talk

Dr. Scott Rick explores the psychology of spending behavior, differences between tightwads and spendthrifts, impact of joint accounts on happiness, decision-making in relationships, benefits of merging finances, navigating backup plans, interview techniques, and excitement for the release of a book on tightwads and spendthrifts.

In this episode of The Brainy Business, Melina Palmer dives into the fascinating world of habits and their impact on business. Inspired by an upcoming interview with author Scott Rick on habits and money, Melina explores how habits can be harnessed in various business settings. She shares examples of big players like Starbucks and Costco, highlighting how they leverage habits to keep customers engaged and coming back for more. Melina's insights on the power of habits and their application in business provide a fresh perspective for entrepreneurs and business owners. By understanding the psychology behind habits, she emphasizes how businesses can create rituals, anticipation, and a sense of scarcity to increase customer engagement and loyalty. Tune in to gain a deeper understanding of how habits influence consumer behavior and how you can leverage them in your business to drive success. In this episode: Maximize Business Success with the Power of Habits Unleash Marketing Success by Leveraging Habit Formation Master the Job to be Done Method for Business Growth Unlock Alternative Product Uses by Breaking Habits Foster Consistency and Engagement in Networking Drive Engagement through Strategic Content Creation Show Notes: 00:00:00 - Introduction Melina Palmer introduces the episode and discusses the importance of habits in business and personal life. 00:03:12 - Leveraging Habits in Business Melina explains how businesses use habits to their advantage, with examples from Lego, Starbucks, and Costco, and how to apply them in different industries. 00:07:46 - Habit Formation with Apps Melina discusses how apps use daily bonuses to create habits and increase user engagement, using examples from popular games like Candy Crush. 00:12:56 - Habits to Overcome Stress and Boredom Melina delves into the role of habits in overcoming stress and boredom, using the example of KitKat's tie-in with coffee breaks to increase sales and customer habit formation. 00:18:08 - Understanding Consumer Habits Exploring the connection between consumer habits and the placement of products in stores, highlighting the importance of understanding the job a product is hired to solve rather than just its features. 00:19:16 - Uncovering Consumer Behavior Researching consumer behavior at McDonald's, specifically focusing on morning milkshake purchases and the reasons behind them. The importance of understanding the job a product is hired to do and making it easy for consumers to fulfill that job. 00:22:12 - Leveraging Consumer Insights Highlighting the significance of understanding how consumers use a product in unexpected ways, and how this can lead to new marketing opportunities. Examples include NyQuil introducing ZzzQuil and the popularity of life hacks. 00:25:39 - Payment Habits and Consumer Behavior Exploring the impact of auto-pay and regular payments on consumer habits, and how businesses can leverage this to encourage customer loyalty. The importance of making payments easy and small in order to foster habitual behavior. 00:29:35 - The Power of Appointment-Based Services Discussing the benefits of appointment-based businesses, and the importance of making it easy for customers to schedule and keep regular appointments. Examples include hair salons, nail salons, and massage therapists. 00:34:12 - The Importance of Making Habits a Priority Making regular appointments a habit by prescheduling can lead to client loyalty and reciprocity. 00:35:19 - Networking and Social Media Habits Being part of people's routines is crucial in networking and social media. Consistency in engagement and genuine relationships are key. 00:38:19 - The Power of Consistency in Content Creation Consistency in content creation is essential for building habits in your audience. Repetition and reliability drive engagement and loyalty. 00:39:27 - Importance of Commitment and Frequency The commitment to frequency in content creation is crucial for building habits. Being less frequent can make it harder for the audience to form a habit. 00:43:10 - Conclusion Melina's top insights from the conversation. What stuck with you while listening to the episode? What are you going to try? Come share it with Melina on social media -- you'll find her as @thebrainybiz everywhere and as Melina Palmer on LinkedIn. Thanks for listening. Don't forget to subscribe on Apple Podcasts or Android. If you like what you heard, please leave a review on iTunes and share what you liked about the show. I hope you love everything recommended via The Brainy Business! Everything was independently reviewed and selected by me, Melina Palmer. So you know, as an Amazon Associate I earn from qualifying purchases. That means if you decide to shop from the links on this page (via Amazon or others), The Brainy Business may collect a share of sales or other compensation. Let's connect: Melina@TheBrainyBusiness.com The Brainy Business® on Facebook The Brainy Business on Twitter The Brainy Business on Instagram The Brainy Business on LinkedIn Melina on LinkedIn The Brainy Business on Youtube Learn and Support The Brainy Business: Check out and get your copies of Melina's Books. Get the Books Mentioned on (or related to) this Episode: Tightwads and Spendthrifts, by Scott Rick Happy Money, by Elizabeth Dunn and Michael Norton The Ritual Effect, by Michael Norton Good Habits, Bad Habits, by Wendy Wood Atomic Habits, by James Clear Top Recommended Next Episode: Wendy Wood Interview (ep 127) Already Heard That One? Try These: Habits (ep 256) Herding (ep 264) Framing (ep 296) Chuck Howard Interview (ep 213) Nudges (ep 218) Expect Error (ep 362) Give feedback (ep 40) Stone Age Brain (ep 237) Tim Ash Interview (ep 334) Other Important Links: Brainy Bites - Melina's LinkedIn Newsletter Return of the weekly salon visit Clay Christensen's Milkshake Marketing Marketing, Milkshakes and Understanding Your Customers Revival and Growth of an Iconic Brand 21 great Advent calendar ideas for Christmas 2018 LEGO City Advent Calendar

Amy Porterfield, esteemed author and host of the Online Marketing Made Easy podcast, shares her journey from working with Tony Robbins to becoming a successful entrepreneur. She emphasizes the importance of embracing entrepreneurship for personal freedom and advises aspiring entrepreneurs to have the courage to pursue their dreams. Amy's expertise in creating profitable digital courses and her emphasis on the value of an email list and scarcity marketing make this episode a must-listen for aspiring entrepreneurs seeking increased confidence and clarity in their pursuit of entrepreneurship.

Discover the psychology of time pressure and its effects on decision-making. Learn strategies to resist impulse buying and make informed purchasing decisions. Explore how businesses can use time pressure to drive sales. Uncover the impact of time pressure on creativity and productivity in the workplace. This episode provides valuable insights for navigating time pressure and making informed decisions during holiday shopping.

Dr. Felicity Heathcote-Marcz discusses brain-friendly business strategies, overcoming cognitive biases, storytelling in marketing, and cultivating empathy in customer understanding. Her expertise in immersive research methodologies and ethnographic approaches provides actionable insights for optimizing organizational strategies. The episode offers a high-level overview of the importance of brain-friendly practices for decision-making, making it valuable for leaders aiming to enhance customer engagement and organizational effectiveness.

Explore the intriguing concept of the Hawthorne Effect and its implications for employee behavior and productivity. Discover the benefits and potential drawbacks of employee monitoring for informed decision-making. Understand the impact of monitoring on productivity in a clothing manufacturing plant in India. Embrace transparency in monitoring to foster a culture of trust and accountability. Consider multiple perspectives and the importance of involving individuals in the monitoring process.